The ratings on The Goodyear Tire&Rubber Co. reflect Standard&Poor's Ratings Services' opinion of Goodyear's aggressive financial risk profile, which is characterized by weak earnings in North America and substantial debt. We characterize the company's business risk profile as fair, which reflects tough global tire industry conditions combined with our view of the company's high fixed-cost structure. These factors offset the company's business strengths, which include its position as one of the three largest tire manufacturers in the world, good geographic diversity, strong distribution channels, and a well-recognized brand name. We believe the tire industry is characterized by excess production capacity, which leads to intense competition from large, diversified global players and focused regional competitors. Fixed-capital and
